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SEC Abandons Crypto Token Battle: Solana, Cardano Off the Hook
Cryptocurrency enthusiasts can now breathe a sigh of relief. The SEC has decided not to push for a court ruling that would classify popular crypto tokens like Solana (SOL-USD), Cardano (ADA-USD), and Polygon (MATIC-USD) as securities in its lawsuit against Binance. This change, revealed in a July 30, 2024 filing, means that the court will not have to decide whether these tokens are securities for now.
What happens with tokens?
The SEC initially targeted several tokens, including BNB (BNB-USD), Binance USD (USD Currency Exchange), Solana, Cardano, Polygon, and others, in its broad assertion that these could be classified as securities. As of June 2023, the SEC has alleged that at least 68 tokens are securities, with a potential impact of over $100 billion on the cryptocurrency market, according to CoinTelegraph.
Changes in Opinion on Cryptocurrencies
The SEC’s retreat comes amid shifting attitudes toward cryptocurrencies in the United States. On July 27, former President Donald Trump pledged to end the “war on cryptocurrency” if reelected, promising to make the U.S. the “crypto capital of the world” and vowing to replace SEC Chairman Gary Gensler. Meanwhile, Democratic members of Congress are also reassessing their stance, with some calling for a “more forward-thinking approach” to digital assets. Vice President Kamala Harris’s advisers are reaching out to cryptocurrency firms to repair ties with the industry, DLNews reported.
A Silver Lining for Cryptocurrency Investors
Amid this positive development, investors may want to consider exploring crypto-related stocks that could benefit from this news. With the SEC stepping back, companies involved in crypto infrastructure, exchanges, and blockchain technology could see a boost. Shares of companies like Coinbase (CURRENCY) and cryptocurrency companies could gain traction as regulatory uncertainty over major tokens eases.
Investors can compare cryptocurrency stocks using TipRanks Stock Comparison tool.
